Do You Know: The Inflation Reduction Act and Its Impact on Jobs and Climate Change
The Inflation Reduction Act (IRA) has been a major success in its first year, spurring hundreds of billions of dollars in clean technology investments. The IRA's private sector-led, government-enabled approach has been a major factor in its success, with companies pouring over $270 billion into U.S.-based clean energy projects, including wind, solar, and batteries. Electric vehicle technology investment has also surpassed $130 billion.
Experts predict trillions more will be invested over the next decade, thanks to the IRA's remarkable incentives. Fatih Birol, Executive Director of the International Energy Agency, called the IEA "the single most important climate action since the Paris Agreement in 2015."
Even oil and gas companies are getting on board, allocating billions to projects such as hydrogen technology and carbon capture, which take advantage of federal subsidies. Forward-thinking industries are also diving in, seeking to benefit from tax deductions for energy efficiency, fleet vehicle electrification, and more.
The IRA isn't just about investments – it supports clean energy jobs, solar grants for low-income households, climate resilience, and environmental justice. The growth of green jobs in red states is a sign that climate action can be good for both the environment and the economy. In particular, the emergence of a "battery belt" in Kentucky, Tennessee, and Georgia is a testament to the economic potential of clean energy. These states have attracted manufacturers of batteries, electric vehicles, solar panels, and other clean energy technologies, creating thousands of new jobs. A recent report from the Department of Energy showed that the U.S. added 114,000 clean energy jobs last year, many of which were in red states.
This trend has even led some Republican officials, such as Trump-aligned GOP Rep. Majorie Taylor Greene, to embrace clean energy. Greene has previously expressed skepticism about climate change, but she has now acknowledged that clean energy can create jobs in her district.
The IRA's true impact lies in its ability to reduce emissions. An analysis by Rhodium Group predicts a decline of 29% to 42% in U.S. emissions by 2030.